Associated Petroleum Gas Utilisation in Russia
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ASSOCIATED PETROLEUM GAS UTILISATION IN RUSSIA ABOUT ASSOCIATED Associated petroleum gas (APG) is the gas dissolved in oil fluids, which contains methane, a common natural gas, and natural gas liquids (NGLs) used as fuel or raw materials for deep conversion. Below is the overview PETROLEUM GAS of all APG utilisation methods focusing on the per unit costs, economic benefits and environmental impacts. HOW IT WORKS After the extraction of oil fluids, they undergo special treatment to remove all by-products, including water, sulphur and associated gas. Without such treatment, the oil will not be allowed into the OILOIL main oil pipeline due to the technical requirements. Once APG has been separated from the oil, it BLENDBLEND needs to be further utilised or disposed of. It is forbidden to simply release the associated gas into atmosphere, as it is highly inflammable and can even explode. ASSOCIATEDASSOCIATED GASGAS APG UTILISATION IN 2005–2015 (BCM) OILOIL 2005 2015 PUMPPUMP Flaring Deep 13% conversion Flaring 40% 27% Deep Injection into the conversion unified gas transmission network of Gazprom 41% 10 11% 15 9 23 34 Injection into the unified gas transmission 4 network of Gazprom 12 Reinjection 7% into oil reservoir 6 14% 8 1 Reinjection 6 into oil reservoir 10 10% Simple Power generation conversion 2% Power generation 8% 15% Simple conversion 12% FLARING HOW IT WORKS The easiest way to dispose of associated gas is to build a flare at the oil field and burn the gas off. METRICS COMPARISON ACROSS UTILISATION METHODS INJECTION INTO THE UNIFIED GAS FLARING REINJECTION INTO INJECTION INTO THE POWER SIMPLE DEEP UNIFIEDTRANSMISSION GAS REINJECTIONOIL RESERVOIR INTO GENERATION CONVERSION CONVERSION FLARING TRANSMISSIONNETWORK OF POWER SIMPLE DEEP OIL RESERVOIR NETWORKINJECTIONGAZPROM OFINTO THE GENERATION CONVERSION CONVERSION UNIFIED GAS REINJECTION INTO GAZPROM FLARING TRANSMISSION POWER SIMPLE DEEP OIL RESERVOIR NETWORKINJECTION OFINTO THE GENERATION CONVERSION CONVERSION UNIFIED GAS REINJECTION INTO GAZPROM FLARING TRANSMISSION POWER SIMPLE DEEP OIL RESERVOIR GENERATION CONVERSION CONVERSION INJECTIONNETWORK OFINTO THE UNIFIEDGAZPROM GAS REINJECTION INTO CAPEX FLARING TRANSMISSION POWER SIMPLE DEEP 0,1 OIL RESERVOIR4,4 5 54,2 15 13,8 OIL RUB/м3 NETWORK OF GENERATION CONVERSION CONVERSION OIL GASGAS FLAREFLARE CAPEX INJECTION INTO THE 3 0,1 4,4 GAZPROM5 54,2 15 13,8 RUB/м UNIFIED GAS REINJECTION INTO FLARING TRANSMISSION POWER SIMPLE DEEP BLENDBLEND CAPEXEconomic OIL RESERVOIR GENERATION CONVERSION CONVERSION 0,1 4,40 NETWORK5 OF 54,2 15 13,8 benefitsConstructionRUB/м3 of a flare and feed -2,8pipelines 3 – 6,1 3,6 – 5,2 7,6 – 10,7 19,8 – 20,1 Economic potential increase0 in oil re- GAZPROM RUB/м3 -2,8 covery 3 – 6,1 3,6 – 5,2 7,6 – 10,7 19,8 – 20,1 CAPEXbenefits potential increase in oil re- 3 0,1 4,4covery 5 54,2 15 13,8 EconomicRUB/м3 0 -2,8 3 – 6,1 3,6 – 5,2 7,6 – 10,7 19,8 – 20,1 CAPEXbenefitsLost profit from –2,8 potentialfrom increase –3 in oil re- from –2,2 from –2,4 3 –12,2 0 3 0,1 4,4covery 5 54,2 15 13,8 RUB/м3 from –2,8 from –3 from –2,2 from –2,4 EconomicLost profit tо –22,6 tо –019,8 tо –16,8 tо –14,6 –12,2 0 RUB/м3 -2,8 3 – 6,1 3,6 – 5,2 7,6 – 10,7 19,8 – 20,1 benefits tо –22,6 potentialtо increase –19,8 in oil re- tо –16,8 tо –14,6 CAPEX3 covery LossesRUB/м equal to the flaring fine –2,8 –3 –2,2 –2,4 EnvironmentalLost3 profit from0,1 from4,4 from5 from54,2 15 13,8 EconomicRUB/м 0 –12,2 0 benefitsimpactRUB/м3 tо -2,8–22,6 tо –19,8 tо3 – 16,86,1 3,6tо ––14,6 5,2 7,6 – 10,7 19,8 – 20,1 OILOIL Environmental 7,1 potential increase0 in oil re- 1,2 1,2 0 0 mt of СО3 equivalent / bcm covery RUB/м 2 from –2,8 from –3 from –2,2 from –2,4 Lostimpact profit 7,1 0 1,2 1,2 –12,20 0 Economicmt of СО3 equivalent / bcm EnvironmentalRUB/м 2 tо –22,6 tо –019,8 tо –16,8 tо –14,6 benefits United-2,8 Nations potential increase in oil re- 3 – 6,1 3,6 – 5,2 7,6 – 10,7 19,8 – 20,1 PUMPPUMP LostimpactRUB/м3 profit fromFramework7,1 –2,8 fromcovery0 –3 from1,2 –2,2 from1,2 –2,4 0 0 Data sources UnitedConvention Nations on RUPEC estimates Report on Clean Energy Market Review RUPEC–12,2 estimates RUPEC0 estimates Themt of СО 3rangeequivalent / between bcm fine-related savings and profits from the sale of petrochemical products EnvironmentalRUB/м 2 tоClimateFramework –22,6 Change tо –19,8 tоby –ECOLUR16,8 tоby B2B-Center –14,6 Data sources Convention(UNFCCC) on RUPEC estimates Report on Clean Energy Market Review RUPEC estimates RUPEC estimates impact Climate7,1 Change 0 by1,2 ECOLUR by B2B-Center1,2 0 0 United(UNFCCC) Nations Lostmt of СО profitequivalent / bcm from –2,8 from –3 from –2,2 from –2,4 2 Framework –12,2 0 EnvironmentalRUB/м3 Data sources tоConvention –22,6 on RUPECtо – estimates19,8 Reporttо on – Clean16,8 Energy tоMarket – 14,6Review RUPEC estimates RUPEC estimates ASSOCIATEDASSOCIATED impact Climate7,1 Change 0 by1,2 ECOLUR by B2B-Center1,2 0 0 United(UNFCCC) Nations mt of СО2 equivalent / bcm Framework EnvironmentalData sources Convention on RUPEC estimates Report on Clean Energy Market Review RUPEC estimates RUPEC estimates GASGAS Climate Change by ECOLUR by B2B-Center impactPollutant emissions. ContaminationUnited(UNFCCC)7,1 Nations area within 80–100 km0 from the flare 1,2 1,2 0 0 Framework mt of СО2 equivalent / bcm Data sources Convention on RUPEC estimates Report on Clean Energy Market Review RUPEC estimates RUPEC estimates Climate Change by ECOLUR by B2B-Center (UNFCCC) United Nations Framework Data sources Convention on RUPEC estimates Report on Clean Energy Market Review RUPEC estimates RUPEC estimates Climate Change by ECOLUR by B2B-Center (UNFCCC) REINJECTION HOW IT WORKS After removal from the oil fluids, APG is collected and reinjected into the oil reservoir along INTO OIL RESERVOIR with other by-products. METRICS COMPARISON ACROSS UTILISATION METHODS INJECTION INTO THE UNIFIED GAS FLARING REINJECTION INTO INJECTION INTO THE POWER SIMPLE DEEP UNIFIEDTRANSMISSION GAS REINJECTIONOIL RESERVOIR INTO GENERATION CONVERSION CONVERSION FLARING TRANSMISSIONNETWORK OF POWER SIMPLE DEEP OIL RESERVOIR NETWORKINJECTIONGAZPROM OFINTO THE GENERATION CONVERSION CONVERSION UNIFIED GAS REINJECTION INTO GAZPROM FLARING TRANSMISSION POWER SIMPLE DEEP OIL RESERVOIR NETWORK OF GENERATION CONVERSION CONVERSION INJECTIONGAZPROM INTO THE UNIFIED GAS REINJECTION INTO FLARING TRANSMISSION POWER SIMPLE DEEP OIL RESERVOIR NETWORKINJECTION OFINTO THE GENERATION CONVERSION CONVERSION CAPEX GAZPROMUNIFIED GAS 3 0,1 REINJECTION4,4 INTO 5 54,2 15 13,8 CAPEXRUB/м FLARING TRANSMISSION POWER SIMPLE DEEP OIL RESERVOIR INJECTION INTO THE GENERATION CONVERSION CONVERSION RUB/м3 0,1 4,4 NETWORK5 OF 54,2 15 13,8 OILOIL UNIFIED GAS REINJECTION INTO GAZPROM FLARING TRANSMISSION POWER SIMPLE DEEP CAPEXEconomic OIL RESERVOIR0 GENERATION CONVERSION CONVERSION 3 0,1 4,4 NETWORK5 OF 54,2 15 13,8 BLEND benefitsAPGRUB/м collection system and gas injection-2,8 wells 3 – 6,1 3,6 – 5,2 7,6 – 10,7 19,8 – 20,1 BLEND Economic potential increase0 in oil re- GAZPROM RUB/м3 covery benefits -2,8 potential increase in oil re- 3 – 6,1 3,6 – 5,2 7,6 – 10,7 19,8 – 20,1 RUB/м3 covery CAPEXEconomic 0,1 4,40 5 54,2 15 13,8 RUB/м3 -2,8 3 – 6,1 3,6 – 5,2 7,6 – 10,7 19,8 – 20,1 benefitsLost profit from –2,8 potentialfrom increase –3 in oil re- from –2,2 from –2,4 3 covery –12,2 0 CAPEXLostRUB/м3 profit fromtо –22,6 –2,8 tоfrom –19,8 –3 fromtо –16,8 –2,2 fromtо –14,6 –2,4 3 0,1 4,4 5 54,2 –12,215 13,80 EconomicRUB/м3 tо –22,6 tо –019,8 tо –16,8 tо –14,6 benefitsThere are practically no publicly available-2,8 data about the economic benefits3 – 6,1 stemming from3,6 – increased 5,2 7,6 oil –recovery 10,7 due19,8 to –the 20,1 CAPEXEnvironmentalLost profit from –2,8 potentialfrom increase –3 in oil re- from –2,2 from –2,4 3 0,1 4,4 5 54,2 15 13,8 higherRUB/м3 pressure in the oil reservoir covery –12,2 0 EconomicEnvironmentalimpactRUB/м3 tо –22,67,1 tо –019,8 tо 1,2–16,8 tо 1,2–14,6 0 0 benefitsmt of СО equivalent / bcm -2,8 3 – 6,1 3,6 – 5,2 7,6 – 10,7 19,8 – 20,1 ASSOCIATEDASSOCIATED impact2 7,1 potential increase0 in oil re- 1,2 1,2 0 0 3 covery OILOIL mtRUB/м of СО equivalent / bcm 2 from –2,8 from –3 from –2,2 from –2,4 EconomicEnvironmentalLost profit 0 –12,2 0 benefitsRUB/м3 United-2,8 Nations 3 – 6,1 3,6 – 5,2 7,6 – 10,7 19,8 – 20,1 GASGAS impact tоFramework –22,67,1 potentialtо increase –019,8 in oil re- tо 1,2–16,8 tо 1,2–14,6 0 0 RUB/м3 UnitedConvention Nations on RUPECcovery estimates Report on Clean Energy RUPEC estimates RUPEC estimates Datamt of СО sourcesequivalent / bcm Market Review 2 from –2,8 from –3 from –2,2 from –2,4 PUMPPUMP Lost profit ClimateFramework Change by ECOLUR by B2B-Center Convention on RUPEC estimates Report on Clean Energy RUPEC–12,2 estimates RUPEC 0estimates DataTheRUB/м 3rangesources between fine-related (UNFCCC)savings and profits from the sale of petrochemical productsMarket Review Environmental tоClimate –22,6 Change tо –19,8 tоby –ECOLUR16,8 tоby B2B-Center –14,6 Lostimpact profit fromUnited(UNFCCC) Nations–2,8 from –3 from –2,2 from –2,4 Framework7,1 0 1,2 1,2 –12,20 0 3 Convention on RUPEC estimates Report on Clean Energy Market Review RUPEC estimates RUPEC estimates DataRUB/мmt of СО sources2 equivalent / bcm Environmental tоClimate –22,6 Change tо –19,8 tоby –ECOLUR16,8 tоby B2B-Center –14,6 impact (UNFCCC)7,1 0 1,2 1,2 0 0 United Nations mt of СО equivalent / bcm Environmental2 Framework Data sources Convention on RUPEC estimates Report on Clean Energy Market Review RUPEC estimates RUPEC estimates impact Climate7,1 Change 0 by1,2 ECOLUR by B2B-Center1,2 0 0 mt of СО equivalent / bcm United(UNFCCC) Nations Environmentally2 neutral solutionFramework provided that APG is utilised in the next extraction cycle Data sources Convention on RUPEC estimates Report on Clean Energy Market Review RUPEC estimates RUPEC estimates Climate Change by ECOLUR by B2B-Center United(UNFCCC) Nations Framework GASGAS Data sources Convention on RUPEC estimates Report on Clean Energy Market Review RUPEC estimates RUPEC estimates Climate Change by ECOLUR by B2B-Center BOOSTERBOOSTER (UNFCCC) INJECTION INTO THE HOW IT WORKS Small amounts of APG can go into the main pipeline to be sold to end consumers as part of natural gas.